§ 17305 Escrow Liability Calculation

This law tells you that “monthly average escrow liability” means the average amount of escrow a member owes over the last 12 months, using the most recent report they sent to the commissioner.

Key Takeaways

•It’s just a definition – it tells you what “monthly average escrow liability” means.
•You use the most recent report the member filed with the commissioner.
•The average is calculated over a 12‑month period.

Example

A homeowner’s mortgage company files a yearly escrow report. To find the monthly average escrow liability, they look at the 12 monthly escrow balances from that report and calculate the average.

The company adds up the escrow balances for each of the 12 months in the report, then divides by 12. That result is the monthly average escrow liability the law talks about.

How to Calculate

Monthly Average Escrow Liability = (Sum of escrow balances for the 12 months) ÷ 12

Get the escrow balance for each of the 12 months from the most recent report.
Add all 12 balances together.
Divide the total by 12 to get the average.

A lender’s latest report shows escrow balances of $1,200 each month for a year.

Result: Monthly Average Escrow Liability = (1,200 × 12) ÷ 12 = $1,200

This law tells you that “monthly average escrow liability” means the average amount of escrow a member owes over the last 12 months, using the most recent report they sent to the commissioner.

Key Takeaways

•It’s just a definition – it tells you what “monthly average escrow liability” means.
•You use the most recent report the member filed with the commissioner.
•The average is calculated over a 12‑month period.

Example

A homeowner’s mortgage company files a yearly escrow report. To find the monthly average escrow liability, they look at the 12 monthly escrow balances from that report and calculate the average.

The company adds up the escrow balances for each of the 12 months in the report, then divides by 12. That result is the monthly average escrow liability the law talks about.

How to Calculate

Monthly Average Escrow Liability = (Sum of escrow balances for the 12 months) ÷ 12

Get the escrow balance for each of the 12 months from the most recent report.
Add all 12 balances together.
Divide the total by 12 to get the average.

A lender’s latest report shows escrow balances of $1,200 each month for a year.

Result: Monthly Average Escrow Liability = (1,200 × 12) ÷ 12 = $1,200

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 17305 Escrow Liability Calculation

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References